|
|
Growth stocks |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Growth stocksStocks whose earnings have grown at an above average rate over a number of years and which are expected to continue to grow at a high rate for some time to come.Growth stocks usually trade on higher P/E ratios than non growth stocks, but their share prices also tend to be more volatile, which means they are inherently more risky than other stocks. If their growth falters, the market may punish them by marking down the share price severely.Because their primary attraction is capital growth, growth stock companies are often not expected to pay dividends. The reasoning is that the shareholders are better served by the money being invested back into the company. This is fine if the company delivers on its growth promises, as increases in earnings will, if the P/E stays the same, result in higher share prices. But if the company fails to deliver on its promises, investors will not only miss out on the capital appreciation they expect, but won't even have dividend income to compensate.Similar MatchesFull Employment and Balance Growth Act of 1978(Humphrey Hawkins Act)Full Employment and Balance Growth Act of 1978(Humphrey Hawkins Act)Federal legislation that, among other things, specifies the primary objectives of U.S. economic policy-maximum employment, stable prices, and moderate long-term interest rates. Engine of growthEngine of growthTerm sometimes used to describe the role that exports may have played in economic development, both of some of the regions of recent settlement in the nineteenth century and of today's NICs. GrowthGrowthSee economic growth. Simple compound growth methodSimple compound growth methodCalculating a growth rate by relating terminal value to initial value and assuming a constant percentage annual rate of growth between the two values. Aggressive growth mutual fundAggressive growth mutual fundA mutual fund designed for maximum capital appreciation that places its money in companies with high growth rates. Further SuggestionsEconomic growthprice earnings growth factor Growth manager Present value of growth opportunities Growth opportunity Growth and income fund Compound Annual Growth Rate Biased growth Net present value of growth opportunities Compound growth rate Economic growth rate growth fund Neoclassical growth model Normal growth firms Internal growth rate Sustainable growth rate Immiserizing growth Export led growth growth and income fund guaranteed growth bond Aggressive Growth Hedge Fund growth investing capital growth Endogenous growth Growth rates |
|
|
|